Crypto Exchange Gemini Layoffs 10% of its Workforce

Crypto exchange Gemini layoffs 10% of its headcount, citing macroeconomic factors as the reason

Crypto exchange Gemini layoffs 10% of its headcount, the Information reported on Monday, citing an internal message. It's at least the third round of cuts at Gemini in the past eight months.

Founded by identical twins Cameron and Tyler Winklevoss, crypto pioneers and former U.S. Olympic rowers Gemini has faced pressure in recent months due to a high-profile dispute involving crypto company Genesis, over a product that the two firms jointly offered.

Its co-founder, Cameron Winklevoss, informed the staff, known internally as 'Astronauts', in a message on Slack, 'We hoped to avoid further reductions after this summer, however, persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no other choice but to revise our outlook and further reduce headcount.'

Crypto firms are off to a rocky start in 2023, with major players such as Coinbase Global Inc cutting jobs and Genesis Global Capital, the lending arm of Genesis, seeking bankruptcy protection.

In the past, crypto layoffs were first reported by the Wall Street Journal, which also reported that Genesis is considering Chapter 11 bankruptcy. According to people familiar with the situation, the company is working with investment bank Moelis & Co to evaluate its options.

Gemini, which had a crypto lending product in partnership with Genesis, and other Genesis creditors have been lobbying for a solution to avoid a situation similar to FTX's quick demise.

Cameron Winklevoss, who co-founded Gemini with his twin brother, accused Barry Silbert, CEO of Genesis' parent company Digital Currency Group, of "bad faith stall tactics" on Monday and he demanded that will commit to resolving $900 million by January 8 in disputed customer assets.